Joy Agwunobi
African Reinsurance Corporation (Africa Re) has announced a solid financial performance for the first half of 2025, highlighted by a 15.31 percent growth in Gross Written Premium (GWP) to $644.30 million, up from $558.72 million recorded in the same period of 2024.
In a statement, the Corporation attributed the robust growth to a significant rise in proportional treaty premiums across its key production centres. The company explained that organic growth was further driven by premium rate increases following market corrections triggered by major catastrophe events. These factors, it said, underscore Africa Re’s operational strength and proactive collaboration with brokers and market players across its core territories.
Adopting IFRS 17 accounting standards, Africa Re also reported a 15.87 percent increase in gross reinsurance revenue, which stood at $612.85 million during the period. The growth was again attributed to proportional treaty premiums and improved market conditions in the aftermath of catastrophe-related corrections.
The company noted that technical expenses rose in line with premium volumes, while net incurred claims increased by 20.71 percent, reflecting adverse claims experience and external economic pressures.
Despite this, Africa Re reaffirmed its commitment to prompt claims settlement and prudent claims management, stressing that it remains a reliable partner to clients during challenging times. Net acquisition costs also increased by 12.04 percent year-on-year, a reflection of the Corporation’s sustained efforts to adequately reward strategic partners.
The reinsurer achieved a net underwriting result of $54.35 million, with a net underwriting margin of 10.82 percent and a net combined ratio of 89.18 percent—figures that management described as evidence of disciplined risk selection and operational resilience.
Africa Re’s investment portfolio delivered $51.15 million in income, up from $42.02 million in the corresponding period of 2024, supported by active asset management strategies amid a volatile global market. Overall, the Corporation posted a net income of $102.81 million, representing a 19.97 percent year-on-year increase.
The balance sheet also strengthened during the period under review, with total assets rising by 10.25 percent to $2.60 billion as of June 30, 2025. Shareholders’ equity climbed 8.80 percent to $1.25 billion, largely supported by higher retained earnings.
Commenting on the performance, Corneille Karekezi, group managing director and chief executive officer of Africa Re, said the results reflect the Corporation’s strong fundamentals and strategic resilience. “Reflecting on our strong performance for the first half of 2025, I am proud to report that Africa Re continues to demonstrate robust growth and resilience. Our expanding business portfolio, disciplined underwriting, and prudent investment strategies have enabled us to achieve significant premium growth while navigating an increasingly complex business environment. The improvement in our financial position, with rising assets and shareholders’ equity, further underscores the effectiveness of our strategy and risk management approach,” he stated.
Looking ahead, Karekezi expressed optimism about sustaining the positive trajectory through the remainder of the year. “As we look ahead, we are confident in Africa Re’s ability to seize opportunities in our core markets, maintaining the momentum that has defined our results for this half year. We remain optimistic that we will achieve the set targets for the 2025 financial year under the current market conditions. The Corporation remains committed to delivering value and upholding the strength and stability our partners expect from us,” he added.
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